Economic recovery sees renewed demand for MSME funding: MD&CEO Shriram Finance

Mumbai, 15 Dec (KNN) The Shriram Finance, merged entity is likely to start its operation from 1st April, 2023 with no plan to apply for bank license.

YS Chakravarti, who would be the MD & CEO of Shriram City Union Finance in an interview with BusinessLine said, that we have MSME or micro-small business funding, which is seeing renewed demand for credit with the economy improving.

He also stated that gold loans and MSME finance business will be scaled up owing to the timely merger.

“As of now, we offer gold loans only in five states. We would like to take it across India with the help of the network of STFC,” added Chakravarti.

The finance company has a strong foothold in South of India, specifically in Tamil Nadu, Andhra Pradesh, Telangana, Maharashtra, and covering some parts of Gujarat.

Explaining the reasons why Shriram City Union Finance would not apply for banking license, Chakravarti said the cost of operations in a bank compared to an NBFC is much higher and that is holding us back, however if the regulator pushes we may consider it.